Oil in EAC is also Rwanda’s oil

With the assumption we may escape the “natural resource curse” that has often engendered conflict on the continent, the EAC can count on some better prospects with the discovery of oil in Kenya, in addition to the substantial reserves in Uganda and the gas discovered in Tanzania. Rwanda and Burundi have a huge stake, and stand to be some of the biggest beneficiaries by virtue of being members of the EAC.All around the EAC it is the same good tidings. Madagascar has discovered some oil, Ethiopia some gas, while Southern Sudan continues apace with its oil production despite the teething problems with her northern neighbour. The latter two countries have ambitions to join the EAC. This promises to make EAC one of the most important energy producing regions in Africa.Africa is the main continent in the world with frequent and substantial new findings of oil and gas. A joint report by the African Development Bank, African Union and the African Development Fund observes that oil reserves in Africa grew by over 25 per cent, while gas has grown by over 100 per cent since the late 1980s.The report notes that Africa’s rich oil fields and the prospects for more discoveries have transformed it into an important player and a key “target” in global oil production and resource extraction. Oil production in the continent is expected to continue to rise at an average rate of 6 per cent per year for the foreseeable future.The majority of oil reserves and production in Africa comes from Libya, Nigeria, Algeria, Angola, and Sudan, which together produce more than 90 per cent of the continent’s reserves. Proved natural gas reserves in Africa are mainly concentrated in four countries; Algeria, Egypt, Libya, and Nigeria, which possess 91.5 per cent of the continent’s proved reserves. Significant oil deposits have been found in Ghana. There are also potential significant oil discoveries in South Africa, Mozambique, and Tanzania.Ironically, although the continent has about 15 per cent of the world’s population and a global energy production of about 12 per cent, it consumes only 3 percent of global commercial energy. The dismal energy consumption statistic works to about 38 out of 53 African countries currently being net oil importers.If the discovery of oil in Kenya pans out, Uganda starts producing and Tanzania begins extracting the gas the EAC is set to be a major energy exporter. The joint report, therefore cautions, them that one of the great challenges is to ensure sufficient, reliable, and environmentally responsible supplies of oil, at prices that reflect market fundamentals. To achieve this, challenges to be addressed include high and volatile oil prices; growing external and internal demand for oil; and sustainable management of the oil and gas resources for the benefit of all. In many ways, East Africa, with all its good and bad news is a microcosm of the continent at large. The report therefore, speaks to the EAC as it speaks to the continent. It notes that the regional nature of the challenges and the growing interdependence between net importing and net exporting African countries require a strengthened partnership among all stakeholders to enhance regional energy security. As stakeholders the East African Community, Rwanda and Burundi can’t afford to be bystanders in the spoils promised by the oil and gas finds in the region. They must also hold their blessed EAC member states to account because if the “natural resource curse” comes into play it will spare none in the region. Twitter: @gituram